Jim Cramer says Bitcoin will drop further in the short term rather than bounce. The investor, who hosts CNBC’s “Mad Money” show reiterated his bearish outlook for the benchmark cryptocurrency by saying that it’s time those within the sector admitted BTC was primed for a big fall.
In his opinion, Bitcoin will certainly dip to lows of $12,000, a level he says the cryptocurrency traded before “the whole fiasco began.”
Cramer criticizes Bitcoin bulls
Cramer’s comments came during an appearance on the “Squawk Box” show, where he criticized recent assertions from Galaxy Digital CEO Mike Novogratz and MicroStrategy’s Michael Saylor.
“We need some guys to just say, look this is the level,” he noted, instead of just claiming to be “a buyer”. But in typical fashion to many outside the industry, the Cramer still doesn’t know what Bitcoin is.
BTC battling downside pressure near $20k
Bitcoin dropped to lows near $20,000 earlier this week, and despite rising above $21k, remains vulnerable to further losses. Billionaire investor Jeff Gundlach noted recently that a break below $20k could see BTC retreat to lows of $10,000.
According to the billionaire, market weakness catalyzed by concerns around Celsius and 3AC could contribute to the new downside momentum.
BTC currently battles downside pressure near $20,600, about 3% down in the past 24 hours. Weekly losses are at 30%, while the bear market has wiped off 70% of its value since it peaked last November at around $69,000.
Saylor on Bitcoin long term performance
Saylor this week noted that Bitcoin was trading near a key level – denoted by a 4-year simple moving average near $21,685 – that has historically been a great buying opportunity.
According to the MicroStrategy chief, investors who go long on Bitcoin for at least four years have never lost money. Also, Bitcoin is a risk-off asset, a store of value when looked at over 4 or more years. But if you trade in the short term, you will see it as a risky asset, Saylor told CNBC.